Reading International(US:RDI)2024-08-14 20:56Financial Performance - Total revenue for Q2 2024 was $46.8 million, a decrease of 28% compared to $65.1 million in Q2 2023[8] - Cinema revenue for Q2 2024 was $42.9 million, down 30% from $61.1 million in Q2 2023[8] - Net loss for Q2 2024 was $9.5 million, compared to a net loss of $2.9 million in Q2 2023[9] - Operating income for Q2 2024 was a loss of $4.4 million, compared to an operating income of $1.8 million in Q2 2023[8] - Basic earnings per share for Q2 2024 was a loss of $0.42, compared to a loss of $0.12 in Q2 2023[8] - The company experienced a comprehensive loss of $8.5 million in Q2 2024, compared to a comprehensive loss of $3.5 million in Q2 2023[9] - For the six months ended June 30, 2024, net income was $(22,939) thousand compared to $(14,185) thousand for the same period in 2023, indicating a decline in profitability[11] - The company reported a net loss of $13,228,000 for the quarter ended March 31, 2024, compared to a net loss of $11,111,000 for the same quarter in the previous year[94] Assets and Liabilities - Total current assets increased to $58.7 million as of June 30, 2024, from $38.7 million at December 31, 2023[5] - Total liabilities decreased to $485.3 million as of June 30, 2024, from $500.1 million at December 31, 2023[6] - Total stockholders' equity decreased to $9.5 million as of June 30, 2024, from $33.1 million at December 31, 2023[7] - As of June 30, 2024, the company had $58.6 million of debt due within twelve months and cash of $9.2 million, resulting in negative working capital of $89.8 million[23] - Current liabilities increased from $127.1 million on December 31, 2023, to $148.4 million on June 30, 2024[6] - The company’s retained earnings deficit increased from $(79.5) million on December 31, 2023, to $(102.1) million on June 30, 2024[7] Cash Flow and Operating Activities - The company reported a net cash used in operating activities of $(13,157) thousand for the six months ended June 30, 2024, compared to $(8,808) thousand for the same period in 2023[11] - Cash and cash equivalents at the end of the period were $10,727 thousand, down from $21,841 thousand at the end of the same period in 2023[11] - The company incurred interest expense of $5,252 thousand for the quarter, compared to $4,874 thousand in the same quarter of 2023[8] Revenue Segments - Real estate revenue for the six months ended June 30, 2024, was $9,946 thousand, a decrease of 3.3% from $10,282 thousand in the same period of 2023[15] - Cinema exhibition revenue for the quarter ended June 30, 2024, was $42,941 thousand, down 29.9% from $61,055 thousand in the same quarter of 2023[15] - Real estate revenue for Q2 2024 was $5,013,000, a slight decrease of 3.9% from $5,217,000 in Q2 2023[15] Debt and Financing - The company extended the maturity date of its Union Square financing facility ($47.1 million) to May 6, 2025, and its NAB facility ($66.8 million) to July 31, 2026[24] - The company is in discussions to extend the maturity date of its $8.0 million loan with Santander and anticipates reaching mutually acceptable terms for its credit facilities[24] - The Corporate Loan facility with NAB was amended to AU$100.0 million, maturing on July 31, 2026, with an additional AU$20.0 million bridge facility maturing on March 31, 2025[81] - Quarterly repayments of AU$1.5 million against the AU$100.0 million Corporate Loan facility will commence from March 31, 2025[81] Asset Management - The company classified several properties as held for sale, including the Cannon Park ETC and Courtenay Central ETC, with expected sales within 12 months[43][44] - The Rotorua cinema property in New Zealand has a current book value of $1.4 million and is classified as held for sale, with an expected completion of sale within 12 months[46] - The industrial property at 2483 Trenton Avenue, Pennsylvania, has a current book value of $460,000 and is also classified as held for sale, with ongoing sales efforts to resolve easement issues[47] Legal and Environmental Matters - The company is involved in various legal proceedings but does not expect a material adverse effect on its business from these claims[88] - Environmental claims related to historical operations are not currently believed to be material in amount, despite potential future costs[89] - The company has accrued estimates for probable losses related to ongoing legal claims, including legal costs[88] Market Outlook - The global cinema industry is expected to improve in the second half of 2024 and 2025, supported by anticipated successful film releases and an increase in the number of movies from major studios[25] - The company expects the global cinema industry to improve in the latter half of 2024, driven by anticipated successful film releases[25] Stock and Compensation - The total number of Class A Common Stock available for issuance under the 2020 Stock Incentive Plan was 1,486,907 shares as of June 30, 2024[96] - Stock options to purchase 1,264,603 shares of Class A Common Stock were granted to senior executives on June 6, 2024, in lieu of cash bonuses[99] - The company recorded a compensation expense of $115,000 for stock options in the quarter ended June 30, 2024, compared to $9,000 for the same quarter in 2023[100] - The total RSUs granted as of June 30, 2024, amounted to 2,233,372, with 1,400,813 units vested[101]